PennyMac Financial price target raised to $125 from $112 at Barclays

Barclays analyst Terry Ma raised the firm’s price target on PennyMac Financial to $125 from $112 and keeps an Overweight rating on the shares as part of a Q3 earnings preview for mortgage finance group. The 30-year mortgage rate is down 74 basis points since Q2, resulting in refinance applications up 90% year-over-year, the analyst tells investors in a research note. The firm maintains its preference for balanced business models but recognizes the outlook is “incrementally more positive.”